Leaders from Scotland’s main opposing political parties came together on Thursday (21st September) in a pledge to work together with the Scottish Chambers of Commerce to heed the concerns of business and prioritise economic growth.

The Scottish Chambers of Commerce Network held its Annual Scottish Business Reception on Thursday, hosted by Scottish Conservative leader Ruth Davidson MSP, and addressed by Derek Mackay MSP, the Cabinet Secretary for Finance and the Constitution.

The reception was the second milestone event of the week for the Chambers network, which two days previously hosted the Chinese Ambassador to the UK, HE. Mr Liu Xiaoming at a dinner for 200 Scots business people in Glasgow.

In his speech to the gathering of business people and politicians in the Scottish Parliament, Scottish Chambers of Commerce President Tim Allan called for elected members at all levels to put business first and to do all in their power to make Scotland a competitive place to do business.

Tim Allan said: “Scotland’s businesses are the creators of our jobs and our wealth. Collectively, they are the engine which grows our economy, pays for our essential public services and provides the opportunities for our people to reach their potential. It is essential that all of Scotland’s politicians from across the political spectrum understand this and deliver policies that support business growth and competitiveness.

“Scotland’s politicians must work hard to understand the issues facing businesses in their constituencies and regions, but with an active network of 26 local Chambers of Commerce across Scotland, our network is seeking to make that task an easy one.”

Ruth Davidson MSP congratulated the Chambers on the success of its China initiative and said that, after a period of successive elections and referenda, the three and a half years before the next Scottish Parliament election were an opportunity for business, led by the Scottish Chambers of Commerce to “put their heads above the parapet” and voice their concerns and needs to their elected representatives. “Politicians whatever their strip should do everything they can to help business.”

“Business, entrepreneurship, the ability to help build and grow is virtuous in and of itself, it helps the country, it helps our young people to have opportunities and it is a public good. There is a shared belief across all the parties that we all have a role in oiling the wheels and getting the Scottish economy moving.”

Responding for the Scottish Government, Derek Mackay MSP described the Chambers as “a force for good”, and his own government as “pro-business and pro-growth” he said: “There is a great deal of agreement [with Chambers] around the skills agenda, around employment, around the fair work agenda, infrastructure investment, internationalisation and empowerment. We appreciate all of the great work you do nationally and locally in mentoring and supporting SMEs. Your work is absolutely invaluable.”

Liz Cameron OBE, chief executive of the Scottish Chambers of Commerce said: “We are grateful to Ruth Davidson and to Derek Mackay for joining us at our Business Reception, and are very encouraged by their words of support for the Chamber Network.

“We sensed a renewed mood of constructive engagement between business and government, firmly placing the economy at the centre. We will continue to work hard to play our part in making Scotland the best place to do business and all Governments will be measured by the impact of their decision making.”

Scottish Chambers of Commerce’s Quarterly Economic Indicator engages with five of Scotland’s key business sectors: Construction, Financial and Business Services, Manufacturing, Retail & Wholesale, and Tourism.

These findings, released in collaboration with the University of Strathclyde’s Fraser of Allander Institute show the position of businesses for the second quarter of 2017. The results from our latest comprehensive survey of businesses in Scotland reveals a broadly positive story in terms of business performance across most sectors but accompanied by some stark warnings about the potential challenges ahead.

Neil Amner of Anderson Strathern, Chair of the Scottish Chambers of Commerce Economic Advisory Group, said:

“Performance in the construction sector has improved since the beginning of the year, but concerns remain about the persistent negative trend in contracts from the public sector. Manufacturing businesses have again reported strong results, with evidence of a sharp increase in export revenues, possibly as a result of the exchange rate. The tourism sector is also looking well set for the summer, whilst key indicators in the financial and business services sector, such as profitability and employment have returned to their best levels for over two years.

“These are all positive signs in line with other recent surveys and data. They indicate that the Scottish economy will continue to grow this year. Businesses are, however, also highlighting longer term threats to success from factors such as falling real incomes and rising recruitment problems. The retail sector is perhaps most exposed to pressures on household budgets. It is therefore worrying that almost half of retail respondents are reporting a fall in revenues and profits. Supply chain price rise pressures will compound that issue. Consumer demand drives around three quarters of Scotland’s economic growth, so unless the recent falls in real earnings are reversed, there is a risk that the impact could spread to the wider economy.

“There is also evidence that the low unemployment rate may be impacting on businesses’ ability to recruit the talent they need. Recruitment difficulties are growing across almost all sectors of the economy and we are seeing businesses increase their investment in staff training, possibly to improve the skills of existing staff or to bring new recruits up to speed, who may not have all the skills that the business needs.

“Those recruitment pressures, underline the need for early agreement on the rights of existing EU workers to live and work in the UK and for the UK’s future migration policy to be driven by business need. We are continuing to hear anecdotal evidence from businesses of a slow but steady drift of EU workers out of the UK. For Scotland, that has to stop if our current recruitment problems are to be reversed.

Although the survey results are positive overall, they are not wildly so. Corporate training investments are being made in the context of tight margins and uncertain times, exposing the punitive nature of the Scottish operation of the Apprenticeship Levy for those paying it. It is time for Governments at all levels to begin planning for the kind of country we want Scotland to be, and investing in assets like world leading digital connectivity to help businesses to grow, rather than placing further cost pressures in the way of growth.”